This year has been fabulous for UTI Short-term Income Regular. For the 1-year period ended October 31, 2009, the fund delivered a return of 9.42 per cent, which put it in the second spot amongst its peers. For the month of April, the fund delivered a return of 3.88 per cent, streets ahead of the category average of 0.51 per cent.
Launched in June 2003, the fund has delivered pretty much in line with the category average or has beaten it by a small margin. It has never really had a great outperformance or underperformance.
The fund invests in a variety of instruments, though at time can be focused on just one particular type. For instance, an allocation of 94 per cent to Commercial Paper (April 2009), 83 per cent to Certificate of Deposits (October 2008), or 60 per cent to Government Securities (May 2009). The fund also takes aggressive cash bets. During the 3-month period spanning January to March 2009, the fund had all its holdings allocated as 'Net Current Assets'.
Though the fund has managed a low expense ratio of 0.20 for a long while, it has now shot up to 0.79.
